Aspiring to start your own business, but don’t know which direction to go? Well, when you’re trying to find the right startup business idea, it’s vital that you move with the times. Opting for a business concept or format that has fallen out of demand is a surefire way of faltering before you have even begun.

When surfing the trends, there is one type of business that seems to maintain its popularity, and that is customization businesses.

What are customization businesses?

Customization businesses ( also considered personalization) are businesses that take products — and often quite generic products — and customize them for their customers. So, rather than selling a simple teddy bear, a customization business takes that teddy bear and embroiders it with the name of the customer or another phrase of the customer’s choosing.

What types of customization businesses are there?

Over the past decade, customization businesses have surfaced offering a variety of standard options including:

Customizable artworks, which involves the production of artwork on spec, such as how customers can order specific quote artwork from sites like Etsy. The customer chooses the words, and the business uses an established template to produce the work as required.
Customizable accessories, such as bags, keyrings, notebooks, and other small items that are then emblazoned with the chosen word or phrase provided by the customer. These pieces are produced in a variety of different ways; some customization involves embroidery, others — such as notebook — involve manufacturing techniques that can be printed onto paper or card.
Also available are customizable engravings, such as jewelry, door plaques, and house numbers. These techniques take a base piece of metal and use CO2 laser cutters to customize the metal for the customer, usually from a basic set of designs.
Customizable woodworking, such as furniture, picture frames, and children’s toys are produced in much the same way as engravings.

Why are customizing businesses so popular?

The trend for customized items can be traced back to the 1990s when almost all products were mass produced. Over time, this attitude has changed, as customers want merchandise that is customized to them individually to their liking, rather than identical to a million other items.

Customization businesses have flourished in particular as a gifting industry. People like the idea of being able to show they have put extra thought into the gifts they give, which is a requirement that customization meets easily.

So are customizing businesses a good idea?

As with all business concepts, customizing businesses have their pros and cons. If you have been considering venturing into this area of business, then you’ll want to read through the points below, so you’re able to make an informed decision about what it all entails.

PRO: Enhanced prices

If you were to open a traditional business selling door plaques, then you could charge around $20 for a door plaque.

If you were to offer to customize that door plaque for your customers, you could then expect to charge at least 50% more for the customization.

Customers are accustomed to paying more for items to be customized, so the potential for high-profit margins exists. You will pay the same base price for that door plaque, and the cost of actually customizing it is relatively inexpensive when you already have the equipment to do so. However, you can charge a much higher price for the personalized item. If you’re looking to maximize your profits, then a customizing business is an excellent way to achieve this.

CON: High competition

As customizing businesses have become increasingly more popular, the rules of supply and demand have come into play. There are more customizing businesses now than there have been at any other point in history, all hoping to capitalize on the demand for these items.

To ensure your business can stand up to this level of competition, you have to offer something unique in your customizing efforts– you can’t just replicate what everyone else is doing.

PRO: Artistic license

One of the most rewarding aspects of a customizing business is that you have full artistic control. Most customizing companies offer a variety of pre-designed customization options, and you can design as many of these as you wish. If you have a creative streak, then customizing businesses are an excellent option.

The artistic aspect is also beneficial in helping to negate the competition issue. Your own artistic skills or unique ability are the best tools you have to make your customizing business stand out.

customization

CON: Customers challenges

During the ordering process of a customized item, customers are usually told that they are responsible for the text, and when it is confirmed, the item is non-refundable. However, for example, if a customer named Marie is trying to buy a customized teddy bear and mistypes their name as “Maria,” they’re not going to be happy.

This is their fault, and they confirmed the text, so you aren’t liable in a legal sense– but from a business sense, you are on the hook, per se. If you refuse to refund and replace the product, you’ve likely lost that customer for good. As a result, you may find yourself bending the rules, replacing the item with the correct spelling, and hoping you have another customer named Marie make an order in the future. At a minimum charge a reasonable correction fee. This exception is an inconvenience, and it’s one you can avoid if you wish to hold customers to their agreement on full textual approval, but you may find it’s a necessary move given the importance of customer retention.

A customization business can truly flourish, but like any business, they also have their fair share of headaches that you will want to consider carefully. If you have an artistic flair and a willingness to be flexible with your customers, then you may find that a customizing business is the way to go!

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